Knight Frank, a real estate consultancy company, released a report on island real estate across the world, noting that Greece’s financial policies could lead to increased sales of the country’s islands.
“As the long-term ramifications of Greece’s financial bailout play out more fire-sales of Greek islands are expected. In 2014 Greece introduced its first permanent property tax which for some owners has made private island ownership more burdensome,” the report said.
One of the main aspects of the deal, and the sticking points of the negotiation, is a fund of 50 billion dollars worth of public assets that will be monetized through privatizations and other means over time. The fund will be controlled by the Greek government under the supervision of European institutions.
Considering that there are anywhere from 1,200 to 6,000 islands in Greece, and just over 200 of them are inhabited, Greek islands are likely to be used as a tool in this liquidation process.
Furthermore, private ownership of islands in Greece is not unprecedented and there is a market for those interested to buy directly from private owners.